Jan 2008 Financial News

BS&T Shareholders meet this evening

Jan 25, 2008

SHAREHOLDERS of the Barbados Shipping and Trading (BS&T) will convene this evening at Sherbourne for their annual general meeting.

And it is expected that the takeover of the company by Neal and Massy, which is still to be given the okay by the Securities Commission, could very well generate considerable discussion at the meeting.

In fact, the meeting which starts at 5.30 p.m., will be another opportunity for the shareholders of the company to come face to face with the Board of Directors, headed by Sir Allan Fields.

Neal and Massy and BS&T had sought to merge their operations but subsequently abandoned the plans.

The proposed merger did not go down well with some Barbadian shareholders of the BS&T, who complained that the ratio of share exchange did not go far enough.

While the merger plans were called off and Neal and Massy successfully pursued a takeover, several other issues have created some disquiet.

These related to Neal and Massy's acquisition of some BS&T shares on the Trinidad and Tobago Stock Exchange at a price which was higher than that offered in Barbados, the revised offer which was lower than what ANSA McAL had tendered before exiting the bidding process, and whether the BS&T Board had in any way erred when at one point it had urged shareholders to go with Neal and Massy offer as opposed to one by ANSA McAL.

Stock Exchange rules in Trinidad and Tobago allow for Neal and Massy to purchase the shares at the higher price. A Board meeting was held at the company yesterday.

Today's meeting will also be of interest not just those of the Barbados Shipping and Trading (BS&T), but potential investors, and investment analysts who have followed the issue.

Although Neal and Massy has secured 84 per cent of the issued shares of the BS&T, it has been unable to take up the shares and pay for them as a result of action by the Securities Commission.

The Commission which was set up in 2003 as a Regulatory Body, said it has determined that it is likely that there have been breaches of the provisions of the Take-Over Bid Regulations, 2002 by party or parties to the BS&T transaction.

However, in a swift response Neal and Massy, one of the parties involved, denied any suggestion it had contravened the laws relevant to the take-over.

One shareholder told the Barbados Advocate yesterday evening, that it was still up to the Court to decide the issue. Until then the shareholders can do nothing but wait, he said. He expects them to approve the financial statements for 2007. In the face of the ongoing scenario which started in May last year, the Barbados Shipping and Trading has reported an improved financial performance for the year to September 30, 2007.

Its financial statements show Group revenue for the period increased to $791.3 million when compared to the $735.9 million the prior year.

The main growth in the property, financial and other services division, occurred at United Insurance Limited and at Warrens Motors Incorporated.

The retail, distribution and manufacturing division's revenue growth occurred mainly in the Food sector.

Net income for the year was $35.0 million. In that report, both Sir Allan Fields and the CEO G. Anthony King said that the company will continue to operate as an independent entity if the takeover does not go ahead. (JB) Ç


Source:
The Barbados Advocate
Friday January 25, 2008

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